EUR
Comment: Trying to base against a very thin Ichimoku ‘cloud’, and note how quickly its upper edge rises this week. A break above the 9-day average at 1.3412 may trigger some short-covering.
Strategy: Buy at 1.3330/1.3300; stop below 1.3075. Add to longs above 1.3425 for 1.3520 then 1.3660.
EUR/JPY
Comment: Bouncing from trendline support, nudging into the Ichimoku ‘cloud’ and the 9-day moving average at 121.95. During this week we shall allow for a number of cautious random moves in the middle of the range established since late October.
Strategy: Attempt longs at 120.80, adding to 120.00; stop below 117.70. Target 123.50, then 125.25.
GBP
Comment: Gapping a little higher this morning, like AUD and NZD, and should re-test the bottom of the Ichimoku ‘cloud’. Hopefully if other currencies gain a little ground against the US dollar they will help Cable to move higher, with some short-covering likely on a sustained break above the 1.5400 area.
Strategy: Buy at 1.4885, adding to 1.4725; stop below 1.4460. First target 1.4920, then 1.5220.
JPY
Comment: Recovering almost 50% of the prior decline meeting the 26-day moving average as expected. We continue to expect a cautious test of the lower edge of the Ichimoku ‘cloud’ this week, followed by some sideways consolidation.
Strategy: Trade the range between 89.75 and 91.50 keeping an open mind.
